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ELN making $100M profit on every 10,000 new users

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May 12, 2009 – Comments (2) | RELATED TICKERS: ELN.DL2

of its MS drug.

See page 2 of this article from Associated press on April 22, 2009 :

http://www.thestreet.com/story/10489801/2/elans-loss-widens-reports-progress-for-ms-drug.html

 

Page 2

Elan said the number of people using Tysabri has risen 54% over the past year to 39,300, slightly more than half of them in the United States, most of the rest in the European Union. Elan's share of first-quarter Tysabri income totaled $158 million, up 48%. It said every 10,000 users of Tysabri represents $100 million in profits for Elan.

It cited data published last month in the Lancet medical journal that said 37% of MS patients using Tysabri had remained free from disease progression for two years, compared with 7% of those taking a placebo.

Research has shown Tysabri works better than long-established treatments but it has faced regulatory and marketing hurdles because of its link to a rare, usually fatal brain-swelling disease called PML.

Elan and Biogen initially pulled Tysabri from the U.S. market in February 2005 when it reported three cases of PML in Tysabri users, two of whom died. American and EU regulators cleared Tysabri for sale in mid-2006 but under much stricter conditions, citing its PML risk.

Biogen said last week that regular scans of Tysabri users had detected a sixth confirmed case of PML since the drug's reintroduction in 2006. Elan and Biogen had already informed investors of five of those cases from August 2008 to February 2009.

Both companies have declined to specify whether any of the recent PML victims have died. Biogen specified that the sixth PML victim had been taking Tysabri for 31 months, longer than the previous five.

2 Comments – Post Your Own

#1) On May 12, 2009 at 10:23 AM, jddubya (< 20) wrote:

I've been a fan of Elan since they pulled the drug in '05 - cashed out when they were hovering in the 20-30 range - now I'm waiting for all of my short term trades to run out of steam to get back in.  Tysabri is truly a winner for the MS patient despite the negative spin it gets from the PML connection. 

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#2) On July 13, 2009 at 4:44 PM, yourtxlady (< 20) wrote:

Hi. I bought several shares of Elan while the stock has been dropping lately. JNJ invested $1.5 billion in this company because of the drug  bapineuzumab which could slow the development of Alzheimer's. This disease affects millions of people directly and indirectly. It is so sad when someone is healthy physically but who can't  take care of themselves because of dementia. This company may surprise investors with a better than expected earnings on July 21.

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